Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rate of Return on Investment Commodore Entertainment recently reported sector income from operations, revenue, and invested assets as follows: Media Networks: The ABC television and

Rate of Return on Investment

Commodore Entertainment recently reported sector income from operations, revenue, and invested assets as follows:

Media Networks: The ABC television and radio network, Commodore channel, ESPN, A&E, E!, and Commodore.com

Parks and Resorts: Commodore World Resort, Commodoreland, Commodore Cruise Line, and other resort properties

Studio Entertainment: Commodore Entertainment, which releases films by Pixar Animation Studios, Marvel Studios, Commodore/Lucasfilm, and Touchstone Pictures

Consumer Products: Character merchandising, Commodore stores, books, and magazines Commodore recently reported sector income from operations, revenue, and invested assets (in millions) as follows

Income from Operations Revenue Invested Assets
Media Networks $165,924 $586,600 $838,000
Parks and Resorts 66,708 523,200 654,000
Studio Entertainment 6,525 391,500 435,000
Consumer Products 129,024 518,400 288,000

Use the DuPont formula to determine the rate of return on investment for the four Commodore Entertainment sectors. Round Profit Margin, ROI to one decimal place and Investment Turnover to two decimal places.

Profit Margin Investment Turnover ROI
Media Networks % %
Parks and Resorts % %
Studio Entertainment % %
Consumer Products % %

b. How do the four sectors differ in their profit margin, investment turnover, and return on investment?

has the highest profit margin, while has the lowest profit margin. has the highest return on investment, while has the lowest return on investment.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditory Cognition And Human Performance: Research And Applications

Authors: Carryl L. Baldwin

1st Edition

0415325943, 978-0415325943

More Books

Students also viewed these Accounting questions

Question

5. Understand how cultural values influence conflict behavior.

Answered: 1 week ago